The West Java Provincial Government will implement efficiency measures in the 2026 Regional Revenue and Expenditure Budget (APBD). This follows a decrease in transfer funds from the central government, which reached IDR 2.45 trillion.

West Java Governor, Dedi Mulyadi, stated that this reduction significantly impacts the structure of the upcoming APBD. For example, the central tax revenue sharing fund sharply declined from IDR 2.2 trillion to IDR 843 billion. Additionally, the General Allocation Fund (DAU) also decreased from IDR 4 trillion to IDR 3.3 trillion.

“Even the Physical Special Allocation Fund (DAK), typically used for building roads, irrigation, and classrooms, has been eliminated for 2026. The IDR 276 billion fund is no longer available,” revealed Dedi.

Not only that, the non-physical special allocation fund for the School Operational Assistance (BOS) was also cut, from IDR 4.8 trillion to IDR 4.7 trillion. This is despite the number of high school/vocational school students in West Java increasing every year.

With the reduction in these various budget lines, the initial projection for the 2026 West Java APBD of IDR 31.1 trillion has shrunk to IDR 28.6 trillion. According to Dedi, this decrease must be addressed without reducing the budget portion for basic public services.

“Education, health, and infrastructure remain priorities. These must not be reduced,” he emphasized.

To cover the deficit, the West Java Provincial Government will postpone the intake of new civil service candidates (CPNS). Efficiency is also being achieved through a reduction in employee expenditure of approximately IDR 768 billion from a total of IDR 9.9 trillion.

“If development stops, many civil servants (ASN) could be left without work. Therefore, new recruitment is temporarily postponed,” explained Dedi.

Grant expenditures are also subject to adjustment. Their budget has been reduced from IDR 3.03 trillion to IDR 2.3 trillion, including the Universal Secondary Education Assistance (BPMU) scheme, which is being converted into direct scholarships. “To be more targeted, assistance will be given directly to students in need,” he said.

Furthermore, the allocation of financial assistance to regencies/cities has been cut from IDR 2 trillion to IDR 1.2 trillion. The budget line for goods and services will also be tightened, from IDR 7.6 trillion to IDR 6.9 trillion, with a target to potentially reduce it further to IDR 5 trillion.

Efficiency is being implemented through simple yet strict measures, such as limiting the use of electricity and water in government offices to only during working hours. Costs for telephones, internet, and meals for guests are also being reduced. “There will be no more large budgets for catering. If needed, it’s enough to hire a cook to be more economical and keep the food fresh,” stated Dedi.

Despite facing fiscal pressure, Dedi affirmed that the West Java Provincial Government will not reduce the quality of public services. “Roads must remain in good condition, schools must remain adequate, street lights must stay on. We must not be defeated by budget constraints,” he concluded.

Expanding Human Resource Contribution, DAIKIN Launches Center of Excellence at BBPVP Bekasi
Daikin management officials pose after inaugurating the DAIKIN Center of Excellence at the Balai Besar Pelatihan Vokasi dan Produktivitas (BBVP) Bekasi.

PT Daikin Airconditioning Indonesia (DAIKIN) has inaugurated the DAIKIN Center of Excellence at the Balai Besar Pelatihan Vokasi dan Produktivitas (BBPVP) Bekasi. The presence of this center of excellence is a significant step in expanding DAIKIN’s contribution to enhancing the competency of the Indonesian workforce, particularly in the field of air conditioning.

The Director of PT Daikin Airconditioning Indonesia explained that the Center of Excellence at BBVP Bekasi is the first to be established in a government vocational training institution or training center. Previously, this program had been running in seven vocational high schools (SMK) in Indonesia over the

West Java Provincial Government

The West Java Provincial Government is the administrative body governing Indonesia’s most populous province, established after Indonesian independence. Its history is tied to the region’s role as a core part of the Sundanese cultural heartland and the former Dutch colonial capital of the Dutch East Indies, Batavia (now Jakarta). The government’s headquarters are located in Bandung, a city historically significant for the 1955 Asian-African Conference.

Regional Revenue and Expenditure Budget (APBD)

The Regional Revenue and Expenditure Budget (APBD) is the annual financial plan of a local government in Indonesia, such as a province, regency, or city. It is a legal document that authorizes the collection of regional revenues and the allocation of funds for public expenditures and development projects within its jurisdiction. The APBD is formulated and approved through a democratic process involving the regional head (governor or regent) and the local legislative council (DPRD) to ensure transparency and accountability in regional financial management.

General Allocation Fund (DAU)

The General Allocation Fund (DAU) is a central component of Indonesia’s fiscal decentralization system, designed to ensure financial equity among its regional governments. It is a non-earmarked transfer from the national budget to provincial, regency, and city administrations, primarily intended to cover subnational expenditures and reduce fiscal disparities. Its history is rooted in the “Big Bang” decentralization laws of 1999, which fundamentally shifted governance and financial authority from the central government to the regions following the fall of the Soeharto regime.

Physical Special Allocation Fund (DAK)

The Physical Special Allocation Fund (DAK Fisik) is a central government transfer to specific regions in Indonesia to fund priority infrastructure projects. It was established to address regional disparities and accelerate development in key sectors like roads, irrigation, and clean water. The fund’s history is tied to fiscal decentralization reforms, aiming to ensure that essential physical infrastructure is built according to national standards while meeting local needs.

School Operational Assistance (BOS)

“School Operational Assistance (BOS)” is not a physical place but a major Indonesian government program. Established in 2005, it provides direct funding to schools to cover their operational costs, aiming to alleviate financial burdens on parents and improve access to quality education. The program has been a cornerstone of Indonesia’s education policy, helping to reduce dropout rates and support schools in managing their own budgets.

Universal Secondary Education Assistance (BPMU)

The Universal Secondary Education Assistance (BPMU) is not a physical place or cultural site, but rather a program. It was a key Ugandan government initiative launched in 2007 to implement the Universal Secondary Education (USE) policy, aimed at increasing access to secondary school by providing financial assistance to eligible students and schools. The program played a significant role in dramatically increasing secondary school enrollment rates across the country.

Balai Besar Pelatihan Vokasi dan Produktivitas (BBPVP) Bekasi

The Balai Besar Pelatihan Vokasi dan Produktivitas (BBPVP) Bekasi is a major vocational training and productivity center in Indonesia. It was established to develop a skilled workforce to support national industrial growth. The center provides hands-on training programs in various technical fields to enhance the competencies of students and workers.

DAIKIN Center of Excellence

The DAIKIN Center of Excellence is a state-of-the-art facility established by the global air conditioning manufacturer Daikin Industries. It serves as a hub for research, development, and training, showcasing the latest innovations in HVAC-R (Heating, Ventilation, Air Conditioning, and Refrigeration) technology. The center reflects Daikin’s long history of technological leadership and its commitment to creating sustainable and energy-efficient climate solutions.